Look at Box 16 on your K-1 too! That's where a lot of these items affecting basis are itemized. Your K-1 should have codes and amounts for each item that increases or decreases your basis. For example, Code A is for tax-exempt interest, Code B is for other tax-exempt income, Code C is for nondeductible expenses. If you add up all the positive items and subtract all the negative items from your ordinary business income, you should get the amount on that last line of Schedule K.

Glad to see you figured it out! Box 16 of the K-1 is definitely the key to understanding that final Schedule K line. For anyone else reading this thread who might have similar issues, here's a quick summary of what typically causes differences between ordinary business income and that last line: 1. Non-deductible expenses (Code C) - like the non-deductible portion of meals, penalties, life insurance premiums 2. Health insurance premiums for >2% shareholders 3. Separately stated items like charitable contributions 4. Tax-exempt income (rare for most small businesses but can happen) 5. Depreciation adjustments and Section 179 expenses The IRS instructions for Schedule K can be confusing, but remember that not every dollar of income or expense affects shareholder basis the same way. When in doubt, always cross-reference with your K-1 Box 16 - it breaks everything down by code so you can see exactly what's included in that summary line. Good luck with the rest of your return, Paolo!

My correction took exactly 58 days to process in 2023, just shy of the 60-day estimate. You might consider requesting a taxpayer advocate if your PCS move creates a financial hardship. The criteria for hardship assistance includes imminent military moves where unresolved tax issues could cause significant difficulty. You'll need to complete Form 911 and provide documentation of your PCS orders. The advocate service can sometimes expedite processing in cases with firm deadlines like military relocations.

I'm dealing with a similar situation right now! Filed my amended return 3 weeks ago and the uncertainty is killing me. What really caught my attention was @Jacob Smithson mentioning the Military Tax Expert Line - I had no idea that existed! As someone who's also facing a PCS move, that sounds like exactly what I need. Has anyone else used that specific number? I've been calling the regular IRS line and getting nowhere. Also wondering if anyone knows whether the type of correction matters for processing time - mine was for unreported 1099-INT income, so hopefully that's on the simpler side?

Friendly reminder that if you're trying to do tax loss harvesting with Robinhood, make sure you're aware of the wash sale rule! If you sold at a loss but bought the same or substantially similar security within 30 days before or after the sale, you can't claim that loss for tax purposes. Made this mistake myself and got a rude awakening at tax time.

This is really helpful info everyone! I'm in a similar boat with significant Robinhood losses last year. Just wanted to add that if you're unsure about whether your situation warrants paying for premium tax software, you can actually calculate your potential tax savings first. Take your net capital loss amount from your 1099-B summary (up to $3,000 for offsetting ordinary income), multiply it by your marginal tax rate, and that's roughly how much you'll save on your tax bill. For example, if you lost $3,000 and you're in the 22% tax bracket, you'd save about $660 in taxes. If the tax savings significantly exceed the cost difference between free and premium software, it's probably worth upgrading. Plus, premium versions usually catch more potential issues that could save you from IRS headaches later.

This is exactly why I always tell people to complete the verification even if the system seems to have moved forward without it. I went through something similar in 2023 - got my refund without verifying, thought I was golden, then boom - CP75C notice in my mailbox 6 weeks later. Had to scramble to get verified through ID.me before they clawed back my refund. The thing is, the IRS has multiple systems that don't always talk to each other perfectly. Your refund processing system might release the funds due to timing constraints, but the Taxpayer Protection Program database still has you flagged. It's like two different departments working off different spreadsheets. My advice? Don't spend that refund money yet. Set it aside in a separate account and proactively complete your ID verification through ID.me or by calling the verification hotline. Better to be safe than sorry, especially when you're relying on that money for expenses. The verification process itself isn't too bad once you get through - just have your documents ready.

This is such a tricky situation! I went through something similar in 2022 - got my refund without verifying, then about 8 weeks later received a CP75 notice requiring verification. The letter gave me 30 days to respond, but I called the TPP line within a week just to be safe. What saved me was keeping detailed records of everything. I took screenshots of my WMR status changes, saved all the emails, and documented the timeline. When I finally got through to an agent, having that documentation helped them understand my case quickly. One thing I learned: even if you get the refund, don't treat it as "cleared" until you've gone at least 6 months without any follow-up notices. The IRS post-processing reviews can take months to catch up, especially during heavy filing seasons. My suggestion would be to call the TPP verification line (833-558-5500) proactively and ask about your specific case. They can tell you definitively whether you still need to verify, even if your online status says "refund received." Better to spend 2 hours on hold now than deal with a surprise clawback later when you've already budgeted that money for expenses.

Late to this conversation but wanted to add something I haven't seen mentioned yet - the audit notice probably specifies a response deadline, usually 30 days from the date of the letter. Make sure you respond by that deadline even if it's just to request an extension for gathering documentation! I made the mistake of missing the deadline when I was audited, and it made the whole process much more complicated. You don't want the IRS to make a determination without your input. Also, if you do end up owing money, know that the IRS is generally willing to set up payment plans. You won't have to "work it off" all at once. Just make sure to file Form 9465 (Installment Agreement Request) if you need a payment plan.

I went through something very similar with my 2020 return! Got audited for claiming the EV credit on what turned out to be a regular hybrid (Toyota Highlander Hybrid). I was terrified at first, but it actually worked out okay. Here's what happened in my case: I owed back about $7,500 in credit plus interest (around $300), but the IRS completely waived all penalties after I submitted Form 843 with a letter explaining that I relied on my tax preparer's advice and provided accurate vehicle information. The key was documenting that I gave them the correct VIN and vehicle details - it was their job to verify eligibility. My preparer initially tried to dodge responsibility, but I filed Form 14157 with the IRS to complain about them. That got their attention real quick, and they ended up covering the interest portion as a "goodwill gesture" to avoid further issues. The whole process took about 4 months from audit notice to resolution, but responding quickly and thoroughly made all the difference. Don't panic - honest mistakes happen and the IRS knows it!